India curbs 'blood diamond' trade

India is the largest importer of small rough diamonds

India has announced steps to ensure that its diamond importers do not buy so-called "conflict diamonds" originating from war-torn Angola and Sierra Leone.

The move comes in the wake of a United Nations Security Council resolution banning trade in diamonds from these countries.

Many international governments have also banned trade in the so-called conflict diamonds.

Profits from diamond trading are widely believed to fund rebel movements in countries like Angola.

India has also come under intense pressure to ban trade in conflict diamonds because it is the world's largest importer of small-sized rough diamonds. It accounts for 55% of the global diamond trade in terms of value.

Must declare diamonds' origin

Under rules announced on Sunday by the country's Commerce Secretary, Prabir Sengupta, Indian diamond importers will have to declare that their stones do not originate from conflict areas such as Sierra Leone, Angola and the Democratic Republic of Congo.

He also said that domestic banks would not finance diamond traders dealing with conflict diamonds.

The state-sponsored Gem and Jewellery Promotion Council has warned that traders who deal in conflict diamonds would be barred from the association.

"The Indian diamond trade is determined that diamonds, which are the symbol of eternal love, purity and beauty, should not be tarnished by the entry of conflict diamonds and sullied with the atrocities of war," said Sanjay Kothari, chairman of the Gem and Jewellery Export Promotion Council.